DreamLife, an EB-5 project, receives final notice of cancellation

Project principal still holds out hope of moving forward with EB-5 project

Jun. 18, 2013

Written by

Dan D’Ambrosio

Free Press Staff Writer

The Vermont Agency of Commerce and Community Development — unswayed by an appeal from DreamLife, an EB-5 project to build assisted living homes around the state — has finalized its cancellation of the project.

The Commerce Agency first notified DreamLife on March 27 that it intended to cancel its memorandum of understanding with the project. The agency oversees the Vermont Regional Center, the only state-owned and state-run EB-5 center in the country, coordinating EB-5 investments in Vermont.

Under the federal EB-5 program, foreign nationals can receive green cards by investing $500,000 in projects that create 10 new jobs after two years in rural and impoverished areas of the country.

Phil Mooney, head of the DreamLife consortium, said in April that DreamLife was preparing a “detailed response” to the state’s concerns with its project. Those concerns included identifying a Florida-based limited liability corporation, USMS Team LLC, as legal counsel in the memorandum of understanding with the state when none of the active officers in USMS Team were licensed to practice law in Florida.

In a letter dated May 1, Commerce Secretary Lawrence Miller told Mooney the cancellation of the memorandum of understanding with DreamLife was final.

“We have considered your submissions, including your proposals to take various actions in an attempt to address ACCD’s assertions,” Miller wrote. “Your submissions have not changed our mind and, therefore, we have decided to proceed with canceling the contract. This letter will serve as our notice of cancellation.”

Mooney told the Burlington Free Press on Tuesday, however, that he still hoped to meet with Miller and salvage the DreamLife project in Vermont.

“We maintain that our project brings substantial benefits in employment and quality of life in several communities in Vermont,” Mooney said. “We have hope of being able to bring the benefits of these projects to Vermont.”

Miller could not be reached for comment on Tuesday.

DreamLife is the first Vermont EB-5 project to be canceled, for “material misrepresentations” in its agreement with the state.